10.28.2021

Goldman Sachs AM and Bloomberg Launch Clean Energy Index

Bloomberg and Goldman Sachs Asset Management are pleased to announce the launch of the Bloomberg Goldman Sachs Global Clean Energy Index. Designed with the energy expertise at both firms, the index is a modified free float-adjusted market capitalization weighted index tracking the performance of over 175 global equities with significant business exposure to the clean energy sector.

The index was developed jointly by Bloomberg and Goldman Sachs Asset Management using a proprietary approach informed by insights from BloombergNEF (BNEF) analysts who identify companies that are active and impactful in their respective sectors and assess their exposure to clean energy. The universe of eligible securities for the index is developed by using a data driven approach to select securities from the broader Bloomberg World Index based on BNEF estimates around their exposure to clean energy.

“Bloomberg and Goldman Sachs Asset Management are offering the market a new standard for clean energy indices,” said Dave Gedeon, Global Head of Equity and Strategy Indices at Bloomberg. “With increased recognition of the significant global investments necessary for de-carbonization coupled with declining renewable energy costs and ever increasing technologies for renewable energy, our launch of a Clean Energy Index is particularly timely, and we look forward to offering this solution to the climate-focused investing community.”

“Mainstream investors have an important role to play in financing the clean energy transition, especially as the battle against climate change intensifies. With new technologies and government policies emerging, however, the energy transition is rapidly evolving and requires a dynamic investment approach. As such, we are excited about leveraging BloombergNEF’s real-time energy insights and proprietary datasets to help investors reallocate capital to align with their long-term climate goals,” said Kyri Loupis, Head of Energy Infrastructure & Renewables at Goldman Sachs Asset Management.

The following sectors have been defined as having an upside exposure to clean energy for the index universe: wind, energy storage, clean power, networks, digitalization, bioenergy, solar and hydrogen. The index will be rebalanced on a quarterly basis, providing a highly dynamic offering that promises to evolve alongside the energy transition and result in lower volatility.

Bloomberg clients can access the index using the ticker BGSCET Index <GO>.

Bloomberg provides an independent, transparent approach to indexing for customers across the globe. For more information, please visit Bloomberg Indices. For more information on BNEF’s energy transition research please visit https://about.bnef.com/.

Source: Bloomberg

Related articles

  1. State Street was previously the sole servicer.

  2. Indexes Show Large-Cap Strength

    Record inflows to ESG funds disguised rising risk aversion in November.

  3. Assessing Bond Liquidity

    Traders need to consider the heterogeneity, diversity, and incongruity of Asian equity markets.

  4. Less risk and increased speed will lead to lower costs and improved outcomes for investors.

  5. Managers plan to outsource functions related to data implementation or infrastructure.